The idea
Price wars are easy to start and hard to stop; prices rarely rise again without a merger, tax or cost shock. Targeted offers protect only at-risk customers. A fighter brand takes on a discounter while the main brand keeps its price. Added value is harder to compare and match. A public price-match promise tells rivals a cut will gain them nothing, but you must honour it.
Use it thoughtfully
- Discount only customers likely to leave.
- Use a fighter brand against a discounter.
- Add hard-to-compare value instead of cutting price.
An example
ILLUSTRATIVE EXAMPLE: Facing a low-price rival, a Myanmar operator launches a separate budget sub-brand for price-sensitive users and keeps its main brand's prices.
A question to try
Which of these four moves could answer your most aggressive competitor this quarter?
A useful framework is a starting point, not a guarantee. Effects vary with the audience, product and situation. Use truthful evidence, respect customer choice, and test the result.